A BILL to amend and reenact §19-23-10, §19-23-13 and §19-23-13b of
the Code of West Virginia, 1931, as amended; to amend and
reenact §29-22-18a of said code; and to amend and reenact §29-
22C-27 of said code, all relating to directing funds to
existing West Virginia Racing Commission Special Account -
Unredeemed Pari-Mutuel Tickets account, to be used to pay
certain current and unpaid debt payments; placing certain
funds in the West Virginia Racing Commission Special Account -
West Virginia Greyhound Breeding Development Fund; removing a
provision concerning the Thoroughbred Development Fund;
eliminating a $200,000 annual payment for providing health and
disability benefits to jockeys and their dependents;
eliminating an obsolete provision concerning a special trust
fund; providing that the Racing Commission may use current
funds to pay for previously incurred obligations; certain receipts from all thoroughbred and greyhound racetracks be
divided on a pro rata basis between those racetracks; and
modifying a current Treasury account to include funds for
greyhound adoption, spaying and neutering.

Be it enacted by the Legislature of West Virginia:
That §19-23-10, §19-23-13 and §19-23-13b of the Code of West
Virginia, 1931, as amended, be amended and reenacted; that §29-22-
18a of said code be amended and reenacted; and that §29-22C-27 of
said code be amended and reenacted, all to read as follows:

(a) Any racing association conducting thoroughbred racing at
any horse racetrack in this state shall pay each day upon which
horse races are run a daily license tax of $250. Any racing
association conducting harness racing at any horse racetrack in
this state shall pay each day upon which horse races are run a
daily license tax of $150. Any racing association conducting dog
races shall pay each day upon which dog races are run a daily
license tax of $150. In the event thoroughbred racing, harness
racing, dog racing or any combination of the foregoing are
conducted on the same day at the same racetrack by the same racing
association, only one daily license tax in the amount of $250 shall be paid for that day. Any daily license tax shall not apply to any
local, county or state fair, horse show or agricultural or
livestock exposition at which horse racing is conducted for not
more than six days.
(b) Any racing association licensed by the Racing Commission
to conduct thoroughbred racing and permitting and conducting pari-
mutuel wagering under the provisions of this article shall, in
addition to the daily license tax set forth in subsection (a) of
this section, pay to the Racing Commission, from the commission
deducted each day by the licensee from the pari-mutuel pools on
thoroughbred racing a tax calculated on the total daily
contribution of all pari-mutuel pools conducted or made at any and
every thoroughbred race meeting of the licensee licensed under the
provisions of this article. The tax, on the pari-mutuel pools
conducted or made each day during the months of January, February,
March, October, November and December, shall be calculated at four-
tenths of one percent of the pool; and, on the pari-mutuel pools
conducted or made each day during all other months, shall be
calculated at one and four-tenths percent of the pool: Provided,
That out of the amount realized from the three tenths of one
percent decrease in the tax effective for fiscal year 1991 and
thereafter, which decrease correspondingly increases the amount of
commission retained by the licensee, the licensee shall annually
expend or dedicate: (i) One half of the realized amount for capital improvements in its barn area at the track, subject to the
Racing Commission's prior approval of the plans for the
improvements; and (ii) the remaining one half of the realized
amount for capital improvements as the licensee may determine
appropriate at the track. The term "capital improvement" shall be
as defined by the Internal Revenue Code: Provided, however, That
any racing association operating a horse racetrack in this state
having an average daily pari-mutuel pool on horse racing of
$280,000 or less per day for the race meetings of the preceding
calendar year shall, in lieu of payment of the pari-mutuel pool
tax, calculated as in this subsection, be permitted to conduct
pari-mutuel wagering at the horse racetrack on the basis of a daily
pari-mutuel pool tax fixed as follows: On the daily pari-mutuel
pool not exceeding $300,000 the daily pari-mutuel pool tax shall be
$1,000 plus the otherwise applicable percentage rate imposed by
this subsection of the daily pari-mutuel pool, if any, in excess of
$300,000: Provided further, That upon the effective date of the
reduction of the daily pari-mutuel pool tax to $1,000 from the
former $2,000, the association or licensee shall daily deposit $500
into the special fund for regular purses established by subdivision
(1), subsection (b), section nine of this article: And provided
further, That if an association or licensee qualifying for the
foregoing alternate tax conducts more than one racing performance,
each consisting of up to thirteen races in a calendar day, the association or licensee shall pay both the daily license tax
imposed in subsection (a) of this section and the alternate tax in
this subsection for each performance: And provided further, That
a licensee qualifying for the foregoing alternate tax is excluded
from participation in the fund established by section thirteen-b of
this article: And provided further, That this exclusion shall not
apply to any thoroughbred racetrack at which the licensee has
participated in the West Virginia Thoroughbred Development Fund for
more than four consecutive years prior to December 31, 1992.
(c) Any racing association licensed by the Racing Commission
to conduct harness racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to
the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on harness
racing, as a tax, three percent of the first $100,000 wagered, or
any part thereof; four percent of the next $150,000; and five and
three-fourths percent of all over that amount wagered each day in
all pari-mutuel pools conducted or made at any and every harness
race meeting of the licensee licensed under the provisions of this
article.
(d) Any racing association licensed by the Racing Commission
to conduct dog racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition to the daily license tax required under subsection (a) of this
section, pay to the Racing Commission, from the commission deducted
each day by the licensee from the pari-mutuel pools on dog racing,
as a tax, four percent of the first $50,000 or any part thereof of
the pari-mutuel pools, five percent of the next $50,000 of the
pari-mutuel pools, six percent of the next $100,000 of the pari-
mutuel pools, seven percent of the next $150,000 of the pari-mutuel
pools, and eight percent of all over $350,000 wagered each day:
Provided, That the licensee shall deduct daily from the pari-mutuel
tax an amount equal to one tenth of one percent of the daily pari-
mutuel pools in dog racing in fiscal year 1990; fifteen hundredths
of one percent in fiscal year 1991; two tenths of one percent in
fiscal year 1992; one quarter of one percent in fiscal year 1993;
and three tenths of one percent in fiscal year 1994 and every
fiscal year thereafter. The amounts deducted shall be paid to the
Racing Commission to be deposited by the Racing Commission in a
banking institution of its choice in a special account to be known
as "West Virginia Racing Commission-Special Account-West Virginia
Greyhound Breeding Development Fund". The purpose of the fund is
to promote better breeding, training track facilities and racing of
greyhounds in the state through awards and purses to bona fide
resident registered greyhound owners of accredited West Virginia
whelped greyhounds. In order to participate and be eligible to
receive an award or purse through the fund, the registered greyhound owner must have an appropriate license from the Racing
Commission to race in West Virginia. The registered greyhound dam
at the time of breeding must be wholly or solely owned or leased by
a bona fide resident or residents of West Virginia. The accredited
West Virginia whelped greyhound must be wholly or solely owned by
a bona fide resident or residents of this state. To qualify as a
bona fide resident of West Virginia, a registered greyhound owner
may not claim residency in any other state. A registered greyhound
owner must prove bona fide residency by providing to the commission
personal income tax returns filed in the State of West Virginia for
the most recent tax year and the three previous tax years, has real
or personal property in this state on which the owner has paid real
or personal property taxes during the most recent tax year and the
previous three tax years and an affidavit stating that the owner
claims no other state of residency. The Racing Commission shall
maintain a registry for West Virginia bred greyhounds. The moneys
shall be expended by the Racing Commission for purses for stake
races, training track facilities, supplemental purse awards,
administration, promotion, and educationaleducation and greyhound
adoption programs involving West Virginia whelped dogs, owned by
residents of this state under rules promulgated by the Racing
Commission. The Racing Commission shall pay out of the greyhound
breeding development fund to each of the licensed dog racing tracks
the sum of $75,000 for the fiscal year ending June 30, 1994. The licensee shall deposit the sum into the special fund for regular
purses established under the provisions of section nine of this
article. The funds shall be expended solely for the purpose of
supplementing regular purses under rules promulgated by the Racing
Commission.
Supplemental purse awards will be distributed as follows:
Supplemental purses shall be paid directly to the registered
greyhound owner of an accredited greyhound.
The registered greyhound owner of accredited West Virginia
whelped greyhounds that earn points at any West Virginia meet will
receive a bonus award calculated at the end of each month as a
percentage of the fund dedicated to the owners as purse
supplements, which shall be a minimum of fifty percent of the total
moneys deposited into the West Virginia Greyhound Breeding
Development fund monthly.
The total amount of the fund available for the owners' awards
shall be distributed according to the ratio of points earned by an
accredited greyhound to the total amount earned in races by all
accredited West Virginia whelped greyhounds for that month as a
percentage of the funds dedicated to the owners' purse supplements.
The point value at all greyhound tracks shall be the same as
approved by the Racing Commission to be effective April 1, 2007.
The West Virginia Greyhound Owners and Breeders Association shall
submit a list of any additions or deletions to the registry of accredited West Virginia whelped greyhounds on the first of each
month. The Racing Commission shall not require anyone to be a
member of a particular association in order to participate in the
West Virginia Greyhound Breeding Development Fund.
The registered greyhound owner of an accredited West Virginia
whelped greyhound shall file a purse distribution form with the
Racing Commission for a percentage of his or her dog's earnings to
be paid directly to the registered greyhound owner or owners of the
greyhound. Distribution shall be made on the fifteenth day of each
month for the preceding month's achievements.
In no event shall points earned at a meet held at a track
which did not make contributions to the West Virginia Greyhound
Breeding Development Fund out of the daily pool on the day the meet
was held qualify or count toward eligibility for supplemental purse
awards.
Any balance in the purse supplement funds after all
distributions have been made for the year revert to the general
account of the fund for distribution in the following year:
Provided, That not more than $2 million from the balance in the
purse supplemental fund shall be used for the construction and
maintenance of two dog training track facilities if such be
approved by the Racing Commission: Provided, however, That not
more than $1 million may be allocated for the construction and
maintenance of each training track: Provided further, That both training track facilities must be located in West Virginia. The
West Virginia Racing Commission shall be authorized to promulgate
rules governing dog training tracks: And provided further, That
the Racing Commission shall: (1) Provide a process in its rules
for competitive bidding of the construction or maintenance, or
both, of the training tracks; and (2) set standards to assure that
only the actual costs of construction and maintenance shall be paid
out of the foregoing fund.
In an effort to further promote the breeding of quality West
Virginia whelped greyhounds, a bonus purse supplement shall be
established in the amount of $50,000 per annum, to be paid in equal
quarterly installments of $12,500 per quarter using the same method
to calculate and distribute these funds as the regular supplemental
purse awards. This bonus purse supplement is for three years only,
commencing on July 1, 1993, and ending June 30, 1996. This money
would come from the current existing balance in the greyhound
development fund.
Each pari-mutuel greyhound track shall provide stakes races
for accredited West Virginia whelped greyhounds: Provided, That
each pari-mutuel track shall have one juvenile and one open stake
race annually. Each pari-mutuel dog track shall provide at least
three restricted races for accredited West Virginia whelped
greyhounds per race card: Provided, however, That sufficient dogs
are available. To assure breeders of accredited West Virginia whelped greyhounds an opportunity to participate in the West
Virginia Greyhound Breeding Development Fund the West Virginia
Racing Commission by July 1, each year shall establish and announce
the minimum number of accredited West Virginia whelped greyhounds
that greyhound racing kennels at West Virginia dog tracks must have
on their racing active list during the calendar year following such
action. The minimum number may vary from dog track to dog track.
The minimum number shall be established after consultation with the
West Virginia Greyhound Owners and Breeders Association and kennel
owners and operators. Factors to be considered in establishing
this minimum number shall be the number of individually registered
accredited West Virginia whelped greyhounds whelped in the previous
two years. The number of all greyhounds seeking qualification at
each West Virginia dog track, the ratio of active running
greyhounds to housed number of greyhounds at each West Virginia dog
track, and the size and number of racing kennels at each West
Virginia dog track. Any greyhound racing kennel not having the
minimum number of accredited West Virginia whelped greyhounds
determined by the West Virginia Racing Commission on their active
list shall only be permitted to race the maximum allowable number
on the active list less the number of accredited West Virginia
whelped greyhounds below the established minimum number.
Consistent violations of this minimum requirement may be reviewed
by the Racing Commission and may constitute cause for denial or revocation of a kennel's racing license. The Racing Commission
shall oversee and approve racing schedules and purse amounts.
Ten percent of the deposits into the greyhound breeding
development fund beginning July 1, 1993 and continuing each year
thereafter, shall be withheld by the Racing Commission and placed
in a special revenue account hereby created in the State Treasury
called the "administration, promotion, andeducational and
education, capital improvement and greyhound adoption programs to
include spaying and neutering account". The Racing Commission is
authorized to expend the moneys deposited in the administration,
promotion, and educational andeducation, capital improvement and
greyhound adoption programs to include spaying and neutering
account at such times and in such amounts as the commission
determines to be necessary for purposes of administering and
promoting the greyhound development program: Provided, That
beginning with fiscal year 1995 and in each fiscal year thereafter
in which the commission anticipates spending any money from the
account, the commission shall submit to the executive department
during the budget preparation period prior to the Legislature
convening before that fiscal year for inclusion in the executive
budget document and budget bill, the recommended expenditures, as
well as requests of appropriations for the purpose of
administration, promotion, and education, capital improvement and
greyhound adoption programs to include spaying and neutering. The commission shall make an annual report to the Legislature on the
status of the administration, promotion, and education, capital
improvement and greyhound adoption programs to include spaying and
neutering account, including the previous year's expenditures and
projected expenditures for the next year.
The Racing Commission, for the fiscal year 1994 only, may
expend up to $35,000 from the West Virginia Greyhound Breeding
Development Fund to accomplish the purposes of this section without
strictly following the requirements in the previous paragraph.
(e) All daily license and pari-mutuel pools tax payments
required under the provisions of this section shall be made to the
Racing Commission or its agent after the last race of each day of
each horse or dog race meeting, and the pari-mutuel pools tax
payments shall be made from all contributions to all pari-mutuel
pools to each and every race of the day.
(f) Every association or licensee subject to the provisions of
this article, including the changed provisions of sections nine and
ten of this article, shall annually submit to the Racing Commission
and the Legislature financial statements, including a balance
sheet, income statement, statement of change in financial position
and an audit of any electronic data system used for pari-mutuel
tickets and betting, prepared in accordance with generally accepted
auditing standards, as certified by an experienced public
accountant or a certified public accountant.

; payment of past
obligations.
(a) All moneys held by any licensee for the payment of
outstanding and unredeemed pari-mutuel tickets, if not claimed
within ninety days after the close of a horse or dog race meeting
or the televised racing day, as the case may be, in connection with
which the tickets were issued, shall be turned over by the licensee
to the racing commission within fifteen days after the expiration
of the ninety-day period, and the licensee shall give any
information required by the racing commission concerning the
outstanding and unredeemed tickets. The moneys shall be deposited
by the racing commission in a banking institution of its choice in
a special account to be known as "West Virginia Racing Commission
Special Account - Unredeemed Pari-Mutuel Tickets." Notice of the
amount, date and place of each deposit shall be given by the racing
commission, in writing, to the state treasurer. The racing
commission shall then cause to be published a notice to the holders
of the outstanding and unredeemed pari-mutuel tickets, notifying
them to present their unredeemed tickets for payment at the
principal office of the racing commission within ninety days from
the date of the publication of the notice. The notice shall be
published within fifteen days following the receipt of the outstanding and unredeemed pari-mutuel ticket moneys by the
commission from the licensee as a Class I legal advertisement in
compliance with the provisions of article three, chapter fifty-nine
of this code, and the publication area for the publication shall be
the county in which the horse or dog race meeting was held and the
county in which the televised racing day wagering was conducted in
this state.
(b) Any outstanding and unredeemed pari-mutuel tickets that
are not presented for payment within ninety days from the date of
the publication of the notice are thereafter irredeemable, and the
moneys theretofore held for the redemption of the pari-mutuel
tickets shall become the property of the racing commission and
shall be expended as provided in this subsectionsubsections (c)
and (d) of this section. The racing commission shall maintain
separate accounts for each licensee and shall record in each
separate account the moneys turned over by the licensee and the
amount expended at the licensee's track for the purposes set forth
in this subsection. The moneys in the West Virginia racing
commission special account - unredeemed pari-mutuel tickets shall
be expended as follows:(c) In the fiscal year beginning on July 1, 2010, the racing
commission shall keep separate the unredeemed pari-mutuel tickets
received from each of the two licensee horse racetracks.
(1) The unredeemed pari-mutuel tickets attributable to each licensee horse racetrack together with funds distributed pursuant
to section ten-b, article twenty-two-a, chapter twenty-nine of this
code shall be used for claims received pursuant to this subsection
by the Racing Commission each calendar quarter: Provided, That the
first distribution after the effective date of amendments to this
section made during the 2010 regular legislative session shall not
occur until February 2011 and then each calendar quarter
thereafter. Any claims made pursuant to this subsection must be
submitted to the racing commission no later than fifteen days after
the race where the funds are awarded. The funds in the two special
accounts - unredeemed pari-mutuel tickets shall be distributed
based on claims received from each horse racetrack as follows:
(A) To the owner of the winning horse in any horse race at a
horse race meeting held or conducted by any licensee: Provided,
That the owner of the horse is at the time of the horse race a bona
fide resident of this state, a sum equal to ten percent of the
purse won by the horse at that race: Provided, however, That in the
event there are more than ten races in any performance, the award
to the resident owner of the winning horse will be that fractional
share of the purse with a numerator of one and a denominator
representing the number of races on the day of the performance. The
commission may require proof that the owner was, at the time of the
race, a bona fide resident of this state. Upon proof by the owner
that he or she filed a personal income tax return in this state for the previous two years and that he or she owned real or personal
property in this state and paid taxes in this state on real or
personal property for the previous two years, he or she shall be
presumed to be a bona fide resident of this state; and (2)(B) To the breeder (that is, the owner of the mare) of the
winning horse in any horse race at a horse race meeting held or
conducted by any licensee: Provided, That the mare foaled in this
state, a sum equal to ten percent of the purse won by the horse:
Provided, however, That in the event there are more than ten races
in any performance, the award to the breeder will be that
fractional share of the purse with a numerator of one and a
denominator representing the number of races on the day of the
performance; and (3)(C) To the owner of the stallion which sired the winning
horse in any horse race at a horse race meeting held or conducted
by any licensee: Provided, That the mare which foaled the winning
horse was served by a stallion standing and registered in this
state, a sum equal to ten percent of the purse won by the horse:
Provided, however, That in the event there are more than ten races
in any performance, the award to the owner of the stallion will be
percentage of the purse based upon the fractional share represented
by the number of races on the day of the performance.; and (2) If in any calendar quarter insufficient funds are
available in each licensee horse racetrack's special account - unredeemed pari-mutuel tickets administered by the Racing
Commission for payments pursuant to subdivision (1), payments shall
be made on a pro rata basis pursuant to paragraphs (A), (B) and (C)
of subdivision (1) of this subsection of the claims submitted from
races won at each horse racetrack. Once payments on each claim are
made, whether in full or on a pro rata basis, no further obligation
for payment is created by this subdivision. Claims received after
the deadline are not valid.(3) If after paying any claims pursuant to this subsection and
funds remain in the accounts, those funds shall carry over to the
next calendar quarter. If in any quarter the surplus in either
account reaches a balance of $1 million, then that surplus balance
shall be placed in to the regular purse fund of that licensee horse
racetrack whose unredeemed pari-mutuel account achieves the
surplus.(4) To those horse racing licensees not participating in the
thoroughbred development fund authorized in section thirteen-b of
this article, the unexpended balance of the licensee's account not
expended as provided in subdivisions (1), (2) and (3) of this
subsection: Provided, That all moneys distributed under this
subdivision shall be expended solely for capital improvements at
the licensee's track: Provided, however, That the capital
improvements must be approved, in writing, by the West Virginia
racing commission before funds are expended by the licensee for that capital improvement; and (d) Any unredeemed pari-mutuel tickets received from licensee
dog racetracks shall be combined into a single balance and
distributed quarterly to the West Virginia racing commission
special account - West Virginia greyhound breeding development
fund. The deposit made pursuant to this subsection does not create
a continuing obligation of payment except to the extent that there
are unredeemed pari-mutuel tickets from the licensee dog
racetracks.
(e) The amendments to this section made during the 2010
regular legislative session shall become effective July 1, 2010.(5) When the moneys in the special account, known as the West
Virginia racing commission special account -unredeemed pari-mutuel
tickets will more than satisfy the requirements of subdivisions
(1), (2), (3) and (4) of this subsection, the West Virginia racing
commission shall have the authority to expend the excess moneys
from unredeemed horse racing pari-mutuel tickets as purse money in
any race conditioned exclusively for West Virginia bred or sired
horses, and to expend the excess moneys from unredeemed dog racing
pari-mutuel tickets in supplementing purses and establishing stake
races and dog racing handicaps at the dog tracks: Provided, That
subject to the availability of funds, the commission shall, after
the requirements of subdivisions (1), (2), (3) and (4) of this
subsection have been satisfied:
(A) Transfer annually two hundred thousand dollars to the West
Virginia racing commission special account - West Virginia
greyhound breeding development fund;
(B) Transfer annually two hundred thousand dollars into a
separate account to be used for stakes races for West Virginia bred
greyhounds at dog racetracks; and
(C) Transfer annually two hundred thousand dollars to a trust
maintained and administered by the organization which is recognized
by the West Virginia racing commission, pursuant to a legislative
rule proposed for promulgation by the commission and authorized by
the Legislature, as the representative of the majority of the
active jockeys in West Virginia, for the purpose of providing
health and disability benefits to eligible active or disabled West
Virginia jockeys and their dependents in accordance with
eligibility criteria established by said organization. For purposes
of this section in determining health benefits, an eligible active
jockey is one who rides at least one hundred mounts per calendar
year of which fifty-one must be in the state of West Virginia:
Provided, That a jockey is not eligible for health benefits if he
or she receives health benefits from any other state; and
(D) After all payments to satisfy the requirements of (A), (B)
and (C) of this proviso have been satisfied, the commission shall
have authority to transfer one hundred fifty thousand dollars left
from all uncashed pari-mutuel tickets to the trust maintained and administered by the organization which is recognized by the West
Virginia racing commission, pursuant to legislative rule proposed
for promulgation by the commission and authorized by the
Legislature as the representative of the majority of the active
jockeys in West Virginia. (f) The Racing Commission shall satisfy obligations of the
prior enactment of this section for all claims received on purses
won on or before June 30, 2010. Claimants must submit all claims
on or before July 15, 2010 for verification by the Racing
Commission. Claims received after July 15, 2010 are not valid.
(1) A transfer of $2.5 million from the State Excess Lottery
Revenue Fund available on the last day of the fiscal year which
began July 1, 2009 shall be made to the nonappropriated fund with
the State Treasurer known as the Unredeemed Pari-Mutuel Tickets
Fund. The Racing Commission shall also transfer to the account
with the State Treasurer monies from the racing commission special
accounts - unredeemed pari-mutuel tickets for deposits received in
each of those accounts that have been credited with unredeemed
pari-mutuel tickets for races completed at any licensee racetrack
as of June 30, 2010, and any other monies appropriated by the
legislature. Unredeemed pari-mutuel tickets for races completed
after June 30, 2010 must remain in the special accounts -
unredeemed pari-mutuel tickets to satisfy future payments pursuant
to this section.
(2) The Racing Commission is authorized to pay claims
received for races completed on or before June 30, 2010 without
regard to date of deposit or date of claim. Claims shall be paid
in date order, with the oldest claims being paid first, until all
claims have been satisfied. All payments made pursuant to this
subsection for claims received on purses won on or before June 30,
2010 shall extinguish any further obligation by the state with
respect to those claims.
(g) The commission shall submit to the legislative auditor a
quarterly report and accounting of the income,and expenditures and
unobligated balance in the special account created by this section
known as the West Virginia racing commission special account -
unredeemed pari-mutuel tickets. (d)(h) Nothing contained in this article shall prohibit one
person from qualifying for all or more than one of the aforesaid
awards or for awards under section thirteen-b of this article. (e)(i) The cost of publication of the notice provided for in
this section shall be paid from the funds in the hands of the state
treasurer collected from the pari-mutuel pools' tax provided for in
section ten of this article, when not otherwise provided in the
budget; but no such costs shall be paid unless an itemized account
thereof, under oath, be first filed with the state auditor. (f)(j) The racing commission is authorized to promulgate
emergency rules, prior to the first day of July, two thousand four September 1, 2010, to incorporate the revisions to this article
enacted during the two thousand four2010 regular legislative
session.

(a) The Racing Commission shall deposit moneys required to be
withheld by an association or licensee in subsection (b), section
nine of this article in a banking institution of its choice in a
special account to be known as "West Virginia Racing Commission
Special Account -- West Virginia Thoroughbred Development Fund":
Provided, That after the West Virginia Lottery Commission has
divided moneys between the West Virginia Thoroughbred Development
Fund and the West Virginia Greyhound Breeding Development Fund
pursuant to the provisions of sections ten and ten-b, article
twenty-two-a, chapter twenty-nine of this code, the Racing
Commission shall, beginning October 1, 2005, deposit the remaining
moneys required to be withheld from an association or licensee
designated to the Thoroughbred Development Fund under the
provisions of subsection (b), section nine of this article,
subdivision (3), subsection (e), section twelve-b of this article,
subsection (b), section twelve-c of this article, paragraph (B),
subdivision (3), subsection (b), section thirteen-c of this article and sections ten and ten-b, article twenty-two-a, chapter twenty-
nine of this code into accounts for each thoroughbred racetrack
licensee with a banking institution of its choice with a separate
account for each association or licensee. Each separate account
shall be a special account to be known as "West Virginia Racing
Commission Special Account - West Virginia Thoroughbred Development
Fund" and shall name the licensee for which the special account has
been established: Provided, however, That the Racing Commission
shall deposit all moneys paid into the Thoroughbred Development
Fund by a thoroughbred racetrack licensee that did not participate
in the Thoroughbred Development Fund for at least four consecutive
calendar years prior to December 31, 1992 from July 8, 2005 until
the effective date of the amendment to this section passed during
the fourth extraordinary session of the seventy-seventh Legislature
shall be paid into the purse fund of that thoroughbred racetrack
licensee: Provided further, That the moneys paid into the
Thoroughbred Development Fund by a thoroughbred racetrack licensee
that did not participate in the Thoroughbred Development Fund for
at least four consecutive calendar years prior to December 31,
1992, shall be transferred into that licensee's purse fund until
April 1, 2006. Notice of the amount, date and place of the
deposits shall be given by the Racing Commission, in writing, to
the State Treasurer. The purpose of the funds is to promote better
breeding and racing of thoroughbred horses in the state through awards and purses for accredited breeders/raisers, sire owners and
thoroughbred race horse owners: And provided further, That five
percent of the deposits required to be withheld by an association
or licensee in subsection (b), section nine of this article shall
be placed in a special revenue account hereby created in the state
Treasury called the "Administration and Promotion Account".
(b) The Racing Commission is authorized to expend the moneys
deposited in the administration and promotion account at times and
in amounts as the Commission determines to be necessary for
purposes of administering and promoting the thoroughbred
development program: Provided, That during any fiscal year in
which the Commission anticipates spending any money from the
account, the Commission shall submit to the executive department
during the budget preparation period prior to the Legislature
convening before that fiscal year for inclusion in the executive
budget document and budget bill the recommended expenditures, as
well as requests of appropriations for the purpose of
administration and promotion of the program. The Commission shall
make an annual report to the Legislature on the status of the
administration and promotion account, including the previous year's
expenditures and projected expenditures for the next year.
(c) The fund or funds and the account or accounts established
in subsection (a) of this section shall operate on an annual basis.
(d) Funds in the Thoroughbred Development Fund or funds in the separate accounts for each association or licensee as provided in
subsection (a) of this section shall be expended for awards and
purses except as otherwise provided in this section. Annually, the
first $800,000 shall be available for distribution for a minimum of
fourteen accredited stakes races at a racetrack which has
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992. The weights for all accredited stakes races
shall be weight for age. One of the stakes races shall be the West
Virginia Futurity and the second shall be the Frank Gall Memorial
Stakes. For the purpose of participating in the West Virginia
Futurity only, all mares, starting with the breeding season
beginning the first day of February through July 31, 2004, and each
successive breeding season thereafter shall be bred back that year
to an accredited West Virginia stallion only which is registered
with the West Virginia Thoroughbred Breeders Association. The
accredited stake races shall be chosen by the committee set forth
in subsection (f) of this section.
(e) Awards and purses shall be distributed as follows:
(1) The breeders/raisers of accredited thoroughbred horses
that earn a purse at a participating West Virginia meet shall
receive a bonus award calculated at the end of the year as a
percentage of the fund dedicated to the breeders/raisers, which
shall be sixty percent of the fund available for distribution in any one year. The total amount available for the
breeders'/raisers' awards shall be distributed according to the
ratio of purses earned by an accredited race horse to the total
amount earned in the participating races by all accredited race
horses for that year as a percentage of the fund dedicated to the
breeders/raisers. However, no breeder/raiser may receive from the
fund dedicated to breeders'/raisers' awards an amount in excess of
the earnings of the accredited horse at West Virginia meets. In
addition, should a horse's breeder and raiser qualify for the same
award on the same horse, they will each be awarded one half of the
proceeds. The bonus referred to in this subdivision may only be
paid on the first $100,000 of any purse and not on any amounts in
excess of the first $100,000.
(2) The owner of an accredited West Virginia sire of an
accredited thoroughbred horse that earns a purse in any race at a
participating West Virginia meet shall receive a bonus award
calculated at the end of the year as a percentage of the fund
dedicated to sire owners, which shall be fifteen percent of the
fund available for distribution in any one year. The total amount
available for the sire owners' awards shall be distributed
according to the ratio of purses earned by the progeny of
accredited West Virginia stallions in the participating races for
a particular stallion to the total purses earned by the progeny of
all accredited West Virginia stallions in the participating races. However, no sire owner may receive from the fund dedicated to sire
owners an amount in excess of thirty-five percent of the accredited
earnings for each sire. The bonus referred to in this subdivision
shall only be paid on the first $100,000 of any purse and not on
any amounts in excess of the first $100,000.
(3) The owner of an accredited thoroughbred horse that earns
a purse in any participating race at a West Virginia meet shall
receive a restricted purse supplement award calculated at the end
of the year, which shall be twenty-five percent of the fund
available for distribution in any one year, based on the ratio of
the earnings in the races of a particular race horse to the total
amount earned by all accredited race horses in the participating
races during that year as a percentage of the fund dedicated to
purse supplements. However, the owners may not receive from the
fund dedicated to purse supplements an amount in excess of thirty-
five percent of the total accredited earnings for each accredited
race horse. The bonus referred to in this subdivision shall only
be paid on the first $100,000 of any purse and not on any amounts
in excess of the first $100,000.
(4) In no event may purses earned at a meet held at a track
which did not make a contribution to the Thoroughbred Development
Fund out of the daily pool on the day the meet was held qualify or
count toward eligibility for an award under this subsection.
(5) Any balance in the breeders/raisers, sire owners and purse supplement funds after yearly distributions shall first be used to
fund the races established in subsection (f) of this section. Any
amount not so used shall revert into the general account of the
Thoroughbred Development Fund for each racing association or
licensee for distribution in the next year.
Distribution shall be made on the fifteenth day of each
February for the preceding year's achievements.
(f)(1) Each pari-mutuel thoroughbred horse track shall provide
at least one restricted race per racing day: Provided, That
sufficient horses and funds are available. For purposes of this
subsection, there are sufficient horses if there are at least seven
single betting interests received for the race: Provided further,
That, if sufficient horses and funds are available, any
thoroughbred horse racetrack whose licensee participated in the
Thoroughbred Development Fund for at least four consecutive
calendar years prior to December 31, 1992, shall provide two
restricted races per racing day, at least one of which may be split
at the discretion of the racing secretary. The restricted race
required by this section must be included in the first nine races
written in the condition book for that racing day.
(2) The restricted races established in this subsection shall
be administered by a three-member committee at each track
consisting of:
(A) The racing secretary at each track;
(B) A member appointed by the authorized representative of a
majority of the owners and trainers at the thoroughbred track; and
(C) A member appointed by the West Virginia Thoroughbred
Breeders Association.
(3) Restricted races shall be funded by each racing
association from:
(A) Moneys placed in the General Purse Fund: Provided, That
a thoroughbred horse racetrack which did not participate in the
West Virginia Thoroughbred Development Fund for a period of more
than four consecutive years prior to December 31, 1992, may fund
restricted races in an amount not to exceed $1 million per year.
(B) Moneys as provided in subdivision (5), subsection (e) of
this section, which shall be placed in a special fund called the
"West Virginia Accredited Race Fund".
(4) The racing schedules, purse amounts and types of races are
subject to the approval of the West Virginia Racing Commission.
(5) If less than seventy-five percent of the restricted races
required by this subsection fail to receive enough entries to race,
the Racing Commission shall, on a quarterly basis, dedicate funds
in each fund back to the general purse fund of the racing
association or licensee: Provided, That no moneys may be dedicated
back to a General purse fund if the dedication would leave less
than $250,000 in the fund.
(g) As used in this section, "West Virginia bred-foal" means a horse that was born in the State of West Virginia.
(h) To qualify for the West Virginia Accredited Race Fund, the
breeder must qualify under one of the following:
(1) The breeder of the West Virginia bred-foal is a West
Virginia resident;
(2) The breeder of the West Virginia bred-foal is not a West
Virginia resident, but keeps his or her breeding stock in West
Virginia year round; or
(3) The breeder of the West Virginia bred-foal is not a West
Virginia resident and does not qualify under subdivision (2) of
this subsection, but either the sire of the West Virginia bred-foal
is a West Virginia stallion, or the mare is covered only by a West
Virginia accredited stallion or stallions before December 31 of the
calendar year following the birth of that West Virginia bred-foal.
(i) From July 1, 2001, West Virginia accredited thoroughbred
horses have preference for entry in all accredited races at a
thoroughbred race track at which the licensee participates in the
West Virginia Thoroughbred Development Fund.
(j) Beginning July 1, 2006, any racing association licensed by
the Racing Commission to conduct thoroughbred racing and permitting
and conducting pari-mutuel wagering under the provisions of this
article must have a West Virginia Thoroughbred Racing Breeders
Program.(k) The Commission shall, during calendar year 2009, conduct a study of the adequacy of funding provided for the Thoroughbred
Development Fund at any thoroughbred racetrack which has not
participated in the West Virginia Thoroughbred Development Fund for
a period of more than four consecutive calendar years prior to
December 31, 1992, and shall report its findings and
recommendations to the Joint Committee on Government and Finance on
or before December 1, 2009.

CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.

ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) The State Lottery Fund in the State Treasury which is
designated and known as the State Excess Lottery Revenue Fund is
continued. The fund consists of all appropriations to the fund and
all interest earned from investment of the fund and any gifts,
grants or contributions received by the fund. All revenues received
under the provisions of sections ten-b and ten-c, article twenty-
two-a of this chapter and under article twenty-two-b of this
chapter, except the amounts due the commission under subdivision
(1), subsection (a), section one thousand four hundred eight,
article twenty-two-b of this chapter, shall be deposited in the
State Treasury and placed into the State Excess Lottery Revenue
Fund. The revenue shall be disbursed in the manner provided in
this section for the purposes stated in this section and shall not
be treated by the State Auditor and the State Treasurer as part of the general revenue of the state.
(b) For the fiscal year beginning July 1, 2002, the commission
shall deposit: (1) $65 million into the subaccount of the state
Excess Lottery Revenue Fund hereby created in the State Treasury to
be known as the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $10 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (e) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $20 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. For the
fiscal year beginning July 1, 2003, the commission shall deposit:
(1) $65 million into the General Purpose Account to be expended
pursuant to appropriation of the Legislature; (2) $17 million into
the Education Improvement Fund for appropriation by the Legislature to the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (e) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $20 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $7 million
into the State Park Improvement Fund for Park Improvements.
(c) For the fiscal year beginning July 1, 2004, and subsequent
fiscal years through the fiscal year ending June 30, 2009, the
commission shall deposit: (1) $65 million into the General Purpose
Account to be expended pursuant to appropriation of the
Legislature; (2) $27 million into the Education Improvement Fund
for appropriation by the Legislature to the PROMISE Scholarship
Fund created in section seven, article seven, chapter eighteen-c of
this code; (3) $19 million into the Economic Development Project
Fund created in subsection (e) of this section for the issuance of
revenue bonds and to be spent in accordance with the provisions of
said subsection; (4) $19 million into the School Building Debt Service Fund created in section six, article nine-d, chapter
eighteen of this code for the issuance of revenue bonds: Provided,
That for the fiscal year beginning July 1, 2008, and subsequent
fiscal years, no moneys shall be deposited in the School Building
Debt Service Fund pursuant to this subsection and instead $19
million shall be deposited into the Excess Lottery School Building
Debt Service Fund; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. No
portion of the distributions made as provided in this subsection
and subsection (b) of this section, except distributions made in
connection with bonds issued under subsection (e) of this section,
may be used to pay debt service on bonded indebtedness until after
the Legislature expressly authorizes issuance of the bonds and
payment of debt service on the bonds through statutory enactment or
the adoption of a concurrent resolution by both houses of the
Legislature. Until subsequent legislative enactment or adoption of
a resolution that expressly authorizes issuance of the bonds and
payment of debt service on the bonds with funds distributed under
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection (d) of this section, the distributions may be used only to fund
capital improvements that are not financed by bonds and only
pursuant to appropriation of the Legislature.
(d) For the fiscal year beginning July 1, 2009, and subsequent
fiscal years, the commission shall deposit: (1) $65 million into
the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $29 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (e) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $19 million
into the Excess Lottery School Building Debt Service Fund created
in section six, article nine-d, chapter eighteen of this code; (5)
$40 million into the West Virginia Infrastructure Fund created in
section nine, article fifteen-a, chapter thirty-one of this code to
be spent in accordance with the provisions of said article; (6) $10
million into the Higher Education Improvement Fund for Higher
Education; and (7) $5 million into the State Park Improvement Fund
for Park Improvements. No portion of the distributions made as
provided in this subsection and subsection (b) of this section,
except distributions made in connection with bonds issued under
subsection (e) of this section, may be used to pay debt service on bonded indebtedness until after the Legislature expressly
authorizes issuance of the bonds and payment of debt service on the
bonds through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the
bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (e) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(e) The Legislature finds and declares that in order to
attract new business, commerce and industry to this state, to
retain existing business and industry providing the citizens of
this state with economic security and to advance the business
prosperity of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay
for all or a portion of the cost of constructing, equipping,
improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any revenue bonds
issued on or after July 1, 2002, which are secured by state excess
lottery revenue proceeds shall mature at a time or times not
exceeding thirty years from their respective dates. The principal
of and the interest and redemption premium, if any, on the bonds
shall be payable solely from the special fund provided in this
section for the payment.
(2) The special revenue fund named the Economic Development
Project Fund into which shall be is deposited the amounts to be
deposited in the fund as specified in subsections (b), (c) and (d)
of this section is continued. The Economic Development Project
Fund shall consist of all such moneys, all appropriations to the
fund, all interest earned from investment of the fund and any
gifts, grants or contributions received by the fund. All amounts
deposited in the fund shall be pledged to the repayment of the
principal, interest and redemption premium, if any, on any revenue
bonds or refunding revenue bonds authorized by this section,
including any and all commercially customary and reasonable costs
and expenses which may be incurred in connection with the issuance, refunding, redemption or defeasance of the bonds. The West
Virginia Economic Development Authority may further provide in the
resolution and in the trust agreement for priorities on the
revenues paid into the Economic Development Project Fund that are
necessary for the protection of the prior rights of the holders of
bonds issued at different times under the provisions of this
section. The bonds issued pursuant to this subsection shall be
separate from all other bonds which may be or have been issued,
from time to time, under the provisions of this article.
(3) After the West Virginia Economic Development Authority has
issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the Economic
Development Project Fund may be used for the redemption of any of
the outstanding bonds issued under this subsection which, by their
terms, are then redeemable or for the purchase of the outstanding
bonds at the market price, but not to exceed the price, if any, at
which redeemable, and all bonds redeemed or purchased shall be
immediately canceled and shall not again be issued.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the
liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized
and directed by this section for projects certified under the
provision of this subsection: Provided, That the bond proceeds
shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and
either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be: Provided, however, That if the bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding the contract,
the determination shall be conclusive for all purposes and shall be
considered to satisfy all the requirements of said article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her designee,
the Secretary of the Department of Revenue, the Executive Director
of the West Virginia Development Office and six persons appointed by the Governor: Provided, That at least one citizen member must
be from each of the state's three congressional districts. The
committee shall meet as often as necessary and make certifications
from bond proceeds in accordance with this subsection. The
committee shall meet within thirty days of the effective date of
this section.
(7) Applications for grants submitted on or before July 1,
2002, shall be considered refiled with the committee. Within ten
days from the effective date of this section as amended in the year
2003, the lead applicant shall file with the committee any
amendments to the original application that may be necessary to
properly reflect changes in facts and circumstances since the
application was originally filed with the committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be
promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) A grant may not be awarded to an individual or other
private person or entity. Grants may be awarded only to an agency,
instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may
be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan, including, but not
limited to, the rate of interest to be paid and the period of the
repayment, shall be determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing, which may be held outside of
Kanawha County. Notice of the time, place, date and purpose of the
hearing shall be published in at least one newspaper in each of the
three congressional districts at least fourteen days prior to the
date of the public hearing.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the
grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public
purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other sports
and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and
facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or
attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National
Register of Historic Places;
(K) Retail facilities, including related service, parking and
transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter
be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account in the State Treasury
known as the Economic Development Project Bridge Loan Fund
administered by the Economic Development Authority created in
article fifteen, chapter thirty-one of this code. Expenditures from
the fund are not authorized from collections but are to be made
only in accordance with appropriation by the Legislature and in
accordance with the provisions of article three, chapter twelve of this code and upon fulfillment of the provisions of article two,
chapter five-a of this code. Loan repayment amounts, including the
portion attributable to interest, shall be paid into the fund
created in this subdivision.
(f) If the commission receives revenues in an amount that is
not sufficient to fully comply with the requirements of subsections
(b), (c), (d) and (i) of this section, the commission shall first
make the distribution to the Economic Development Project Fund;
second, make the distribution or distributions to the other funds
from which debt service is to be paid; third, make the distribution
to the Education Improvement Fund for appropriation by the
Legislature to the PROMISE Scholarship Fund; and fourth, make the
distribution to the General Purpose Account: Provided, That,
subject to the provisions of this subsection, to the extent the
revenues are not pledged in support of revenue bonds which are or
may be issued, from time to time, under this section, the revenues
shall be distributed on a pro rata basis.
(g) Each fiscal year, the commission shall, after meeting the
requirements of subsections (b), (c), (d) and (i) of this section
and after transferring to the State Lottery Fund created under
section eighteen of this article an amount equal to any transfer
from the State Lottery Fund to the Excess Lottery Fund pursuant to
subsection (f), section eighteen of this article, deposit fifty
percent of the amount by which annual gross revenue deposited in the State Excess Lottery Revenue Fund exceeds $225 million in a
fiscal year in a separate account in the State Lottery Fund to be
available for appropriation by the Legislature.
(h) When bonds are issued for projects under subsection (d)
(e) of this section or for the School Building Authority,
infrastructure, higher education or park improvement purposes
described in this section that are secured by profits from
lotteries deposited in the State Excess Lottery Revenue Fund, the
Lottery Director shall allocate first to the Economic Development
Project Fund an amount equal to one tenth of the projected annual
principal, interest and coverage requirements on any and all
revenue bonds issued, or to be issued as certified to the Lottery
Director; and second, to the fund or funds from which debt service
is paid on bonds issued under this section for the School Building
Authority, infrastructure, higher education and park improvements
an amount equal to one tenth of the projected annual principal,
interest and coverage requirements on any and all revenue bonds
issued, or to be issued as certified to the Lottery Director. In
the event there are insufficient funds available in any month to
transfer the amounts required pursuant to this subsection, the
deficiency shall be added to the amount transferred in the next
succeeding month in which revenues are available to transfer the
deficiency.
(i) Prior to the distributions provided in subsection (d) of this section, the Lottery Commission shall deposit into the General
Revenue Fund amounts necessary to provide reimbursement for the
refundable credit allowable under section twenty-one, article
twenty-one, chapter eleven of this code.
(j)(1) The Legislature considers the following as priorities
in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(k) The Legislature further directs the Governor to focus
resources on the creation of a prescription drug program for senior
citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and
cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his or her
progress back to the Joint Committee on Government and Finance on
an annual basis until a comprehensive program has been fully
implemented.(l) After all of the expenditures in subsections (a) through
(i) of this section have been satisfied in any fiscal year, the
next $2 million shall be distributed as follows:
(1) On the last day of the fiscal year that begins on July 1,
2010 and for each fiscal year thereafter, forty-six percent shall
be placed in the general purse fund of a thoroughbred racetrack
licensee that did not participate in the Thoroughbred Development
Fund for at least four consecutive calendar years prior to December
31, 1992 for payment of regular purses;
(2) Forty-three and one half percent shall be distributed to
the racing commission special account - unredeemed pari-mutual
tickets established on behalf of a thoroughbred racetrack licensee
that did participate in the Thoroughbred Development Fund for at
least four consecutive calendar years prior to December 31, 1992;
(3) Five and one half percent shall be distributed to the racing commission special account - unredeemed pari-mutuel tickets
established on behalf of a thoroughbred racetrack licensee that did
not participate in the Thoroughbred Development Fund for at least
four consecutive calendar years prior to December 31, 1992; and
(4) Five percent shall be distributed to the West Virginia
racing commission special account - greyhound breeding development
fund.ARTICLE 22C. WEST VIRGINIA LOTTERY RACETRACK TABLE GAMES ACT.

(a)(1) The special fund in the State Treasury known as the
West Virginia Lottery Racetrack Table Games Fund is continued and
all tax collected under this article shall be deposited with the
State Treasurer and placed in the West Virginia Lottery Racetrack
Table Games Fund. The fund shall be an interest-bearing account
with all interest or other return earned on the money of the fund
credited to and deposited in the fund.
(2) Notwithstanding any provision of this article to the
contrary, all racetrack table games license fees received by the
commission pursuant to section eight of this article shall be
deposited into the Community-Based Service Fund which is continued
in the State Treasury. Moneys of the fund shall be expended by the
Bureau of Senior Services upon appropriation of the Legislature solely for the purpose of enabling the aged and disabled citizens
of this state to maintain their residency in the community-based
setting through the provision of home and community-based services.
(b) From the gross amounts deposited into the Racetrack Table
Games Fund pursuant to subsection (a) of this section, the
commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection (e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia
Lottery table games to the special funds established by each
thoroughbred racetrack table games licensees for the payment of
regular racetrack purses, the amount being divided equallyon a pro
rata basis between the special funds of each thoroughbred racetrack
table games licensee and transfer two and one-half percent of
adjusted gross receipts from all greyhound racetracks with West
Virginia Lottery table games to the special funds established by
each greyhound racetrack table games licensees for the payment of
regular racetrack purses, the amount being divided equally between
the special funds of each greyhound racetrack table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the West Virginia Thoroughbred
Development Fund created under section thirteen-b, article twenty-three, chapter nineteen of this code and the West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro rata
among the development funds for each racetrack table games licensee
based on relative adjusted receipts from each racetrack. The
amounts transferred to these funds may not be used for the benefit
of any person or activity other than at or associated with a
racetrack table games licensee;
(4) Transfer one percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties
where racetracks with West Virginia Lottery table games are
located. The one percent transferred under this subdivision shall
be divided pro rata among the counties with a racetrack with West
Virginia Lottery table games based on relative adjusted gross
receipts from each county's racetrack: Provided, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which county a racetrack
is located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall receive
the one percent of adjusted gross receipts as provided in this
subdivision for the purpose of capital improvements;
(5) Transfer two percent of the adjusted gross receipts from each licensed racetrack to the governing bodies of municipalities
within counties where racetracks with West Virginia Lottery table
games are located, which shall be allocated as follows:
(A) One half of the amounts transferred under this subdivision
shall be allocated to the municipalities within each county having
a racetrack table games licensee, based on relative adjusted gross
receipts from West Virginia Lottery table games from those
racetracks and the total amount allocated to the municipalities
within a county shall be divided pro rata among the municipalities
based on each municipality's population determined at the most
recent United States decennial census of population: Provided,
That: (i) For each allocation, when a municipality is physically
located in two or more counties, only that portion of its
population residing in the county where the authorized table games
are located shall be considered; (ii) a single municipality in a
county where West Virginia Lottery racetrack table games are played
may not receive a total share under this paragraph that is in
excess of seventy-five percent of the total distribution under this
paragraph for the county in which the municipality is located; and
(iii) a municipality receiving moneys under this paragraph may not
receive an amount which is less than that received by a
municipality under provisions of subdivision (4), subsection (d) of
this section; and
(B) One half of the amounts transferred under this subdivision shall be allocated pro rata to the municipalities within all the
counties, having a racetrack table games licensee based on each
municipality's population determined at the most recent United
States decennial census of population: Provided, That: (i) A
municipality which received funds above its pro rata share pursuant
to subpart (iii), paragraph (A) of this subdivision may not receive
an allocation under this paragraph; (ii) for each allocation, when
a municipality is physically located in two or more counties, only
that portion of its population residing in the county where the
authorized table games are located shall be considered; and (iii)
a single municipality in a county where West Virginia Lottery
racetrack games are played may not receive a total share under this
paragraph that is in excess of twenty-five percent of the total
transfers under this paragraph: Provided, however, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which county a racetrack
is located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall receive
the two percent of adjusted gross receipts as provided in this
subdivision for the purpose of capital improvements;
(6) Transfer one half of one percent of the adjusted gross
receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located. The municipalities shall each receive an equal share of the total amount allocated
under this subdivision: Provided, That distribution under this
subdivision may not be made to any municipality which did not have
a licensed racetrack within its municipal boundaries as they
existed on January 1, 2007: Provided, however, That if no
racetrack table games licensee is located within a municipality, a
transfer may not be made under this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred to
as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection (d) of this section.
(c) Beginning with the fiscal year following the licensing of
every licensed racetrack to offer West Virginia lottery racetrack
table games under this article, subsection (b) of this section
shall be superseded and replaced by this subsection for
distribution of the balances in the fund established by subsection
(a) of this section. From the gross amounts deposited into the
fund, the commission shall:
(1) Retain an amount for the administrative expenses of the
commission as determined by the commission in accordance with
subsection(e) of this section;
(2) Transfer two and one-half percent of adjusted gross
receipts from all thoroughbred racetracks with West Virginia
Lottery table games to the special funds established by each
thoroughbred racetrack table games licensee for the payment of regular racetrack purses, the amount being divided equallyon a pro
rata basis between the special funds of each thoroughbred racetrack
table games licensee and transfer two and one-half percent of
adjusted gross receipts from all greyhound racetracks with West
Virginia Lottery table games to the special funds established by
each greyhound racetrack table games licensee for the payment of
regular racetrack purses, the amount being divided equally between
the special funds of each greyhound racetrack table games licensee;
(3) Transfer two percent of the adjusted gross receipts from
all licensed racetracks to the West Virginia Thoroughbred
Development Fund created under section thirteen-b, article twenty-
three, chapter nineteen of this code and the West Virginia
Greyhound Breeding Development Fund created under section ten,
article twenty-three, chapter nineteen of this code. The total
amount transferred under this subdivision shall be divided pro rata
among the development funds for each racetrack table games licensee
based on relative adjusted receipts from each racetrack. The
amounts transferred to these funds may not be used for the benefit
of any person or activity other than at or associated with a
racetrack table games licensee;
(4) Transfer two percent of the adjusted gross receipts from
each licensed racetrack to the county commissions of the counties
where racetracks with West Virginia Lottery table games are
located. The money transferred under this subdivision shall be divided pro rata among the counties with a racetrack with West
Virginia Lottery table games based on relative adjusted gross
receipts from each county's racetrack: Provided, That the county
board of education of a growth county, as that term is defined in
section three, article twenty, chapter seven of this code, which
has enacted the Local Powers Act, and in which a racetrack is
located that has participated in the West Virginia Thoroughbred
Development Fund since on or before January 1, 1991, shall receive
one half of that county's share of adjusted gross receipts as
provided in this subdivision for the purpose of capital
improvements;
(5) Transfer three percent of the adjusted gross receipts from
each licensed racetrack to the governing bodies of municipalities
within counties where racetracks with West Virginia Lottery table
games are located, which shall be allocated as follows:
(A) One half of the money transferred by this subdivision
shall be allocated to the municipalities within each county, other
than a county described in paragraph (C) of this subdivision,
having a racetrack table games licensee based on relative adjusted
gross receipts from West Virginia Lottery table games from those
racetracks and the total amount allocated to the municipalities
within a county shall be divided pro rata among the municipalities
based on each municipality's population determined at the most
recent United States decennial census of population: Provided, That: (i) For each allocation, when a municipality is physically
located in two or more counties, only that portion of its
population residing in the county where the authorized table games
are located shall be considered; (ii) a single municipality in a
county where West Virginia Lottery racetrack table games are played
may not receive a total share under this paragraph that is in
excess of seventy-five percent of the total distribution under this
paragraph for the county in which the municipality is located; and
(iii) a municipality receiving moneys under this paragraph may not
receive an amount which is less than that received by a
municipality under provisions of subdivision (4), subsection (d) of
this section.
(B) One half of the money transferred under this subdivision
shall be allocated pro rata to the municipalities within all the
counties, other than a county described in paragraph (C) of this
subdivision, having a racetrack table games licensee based on each
municipality's population determined at the most recent United
States decennial census of population: Provided, That: (i) A
municipality which received funds above its pro rata share pursuant
to subparagraph (iii), paragraph (A) of this subdivision shall not
receive an allocation under this paragraph; (ii) for each
allocation, when a municipality is physically located in two or
more counties, only that portion of its population residing in the
county where the authorized table games are located shall be considered; and (iii) a single municipality in a county where West
Virginia Lottery racetrack games are played may not receive a total
share under this paragraph that is in excess of twenty-five percent
of the total transfers under this paragraph.
(C) Notwithstanding the provisions of paragraphs (A) and (B)
of this subdivision, when a racetrack is located in a growth
county, as that term is defined in section three, article twenty,
chapter seven of this code, which has enacted the Local Powers Act,
and in which county a racetrack is located that has participated in
the West Virginia Thoroughbred Development Fund since on or before
January 1, 1991, the county board of education shall receive two
thirds of the share of adjusted gross receipts from West Virginia
Lottery table games from the racetrack in the county as provided in
this subdivision and the municipalities within the county shall
share the remaining one third of the total amount allocated as
provided in this paragraph. The municipal one-third share shall be
divided pro rata among the municipalities based on each
municipality's population determined at the most recent United
States decennial census of population. All money transferred under
this paragraph shall be used by the county board of education and
by the municipalities for the purpose of capital improvements;
(6) Transfer one half of one percent of the adjusted gross
receipts to the governing bodies of municipalities in which a
racetrack table games licensee is located. The municipalities shall each receive an equal share of the total amount allocated
under this subdivision: Provided, That distribution under this
subdivision may not be made to any municipality that did not have
a licensed racetrack within its municipal boundaries as they
existed on January 1, 2007: Provided, however, That if no
racetrack table games licensee is located within a municipality, a
transfer may not be made under this subdivision; and
(7) Distribute the remaining amounts, hereinafter referred to
as the net amounts in the Racetrack Table Games Funds, in
accordance with the provisions of subsection (d) of this section.
(d) From the net amounts in the Racetrack Table Games Fund,
the commission shall:
(1) Transfer seventy-six percent to the State Debt Reduction
Fund which is hereby continued in the State Treasury. Moneys of
the fund shall be expended solely for the purpose of accelerating
the reduction of existing unfunded liabilities and existing bond
indebtedness of the state and shall be expended or transferred only
upon appropriation of the Legislature;
(2) Transfer four percent, divided pro rata based on relative
adjusted gross receipts from the individual licensed racetracks for
and on behalf of all employees of each licensed racing association,
into a special fund to be established by the Racing Commission to
be used for payment into the pension plan for all employees of each
licensed racing association;
(3) Transfer ten percent, to be divided and paid in equal
shares, to each county commission in the state that is not eligible
to receive a distribution under subdivision (4), subsection (b) of
this section: Provided, That funds transferred to county
commissions under this subdivision shall be used only to pay
regional jail expenses and the costs of infrastructure improvements
and other capital improvements; and
(4) Transfer ten percent, to be divided and paid in equal
shares, to the governing bodies of each municipality in the state
that is not eligible to receive a distribution under subdivisions
(5) and (6), subsection (b) of this section: Provided, That funds
transferred to municipalities under this subdivision shall be used
only to pay for debt reduction in municipal police and fire pension
funds and the costs of infrastructure improvements and other
capital improvements.
(e) All expenses of the commission incurred in the
administration and enforcement of this article shall be paid from
the Racetrack Table Games Fund, including reimbursement of state
law-enforcement agencies for services performed at the request of
the commission pursuant to this article. The commission's expenses
associated with a particular racetrack with authorized table games
under this article may not exceed three percent of the total annual
adjusted gross receipts received from that licensee's operation of
table games under this article, including, but not limited to, all license fees or other amounts attributable to the licensee's
operation of table games under this article, except as provided in
subdivision (2), subsection (a) of this section. However, for the
fiscal year following the licensing of every licensed racetrack to
offer West Virginia lottery racetrack table games under this
article and for the fiscal year thereafter, the commission's
expenses associated with a particular racetrack with authorized
table games under this article may not exceed four percent of the
total annual adjusted gross receipts received from that licensee's
operation of table games under this article, including, but not
limited to, all license fees or other amounts attributable to the
licensee's operation of table games under this article, except as
provided in subdivision (2), subsection (a) of this section. These
expenses shall either be allocated to the racetrack with West
Virginia Lottery table games for which the expense is incurred, if
practicable, or be treated as general expenses related to all
racetrack table games facilities and be allocated pro rata among
the racetrack table games facilities based on the ratio that annual
adjusted gross receipts from operation of table games at each
racetrack with West Virginia Lottery table games bears to total
annual adjusted gross receipts from operation of table games at all
racetracks with West Virginia Lottery table games during the fiscal
year of the state. From this allowance, the commission shall
transfer at least $100,000 but not more than $500,000 into the Compulsive Gambling Treatment Fund created in section nineteen,
article twenty-two-a of this chapter.